The wealth effects of deregulation of Canadian financial institutions

Canada, like other industrial countries, recently introduced various financial reforms to remove the barriers separating the operations and ownership of banks from non-bank financial institutions. This study analyzes the wealth effects of the reforms on the banks and non-bank financial institutions...

Full description

Saved in:
Bibliographic Details
Published in:Journal of banking & finance 1995-10, Vol.19 (7), p.1211-1236
Main Authors: Amoako-Adu, Ben, Smith, Brian F.
Format: Article
Language:English
Subjects:
Banks
Canadian
Deregulation
Financial institutions
Financial reforms
Wealth
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Canada, like other industrial countries, recently introduced various financial reforms to remove the barriers separating the operations and ownership of banks from non-bank financial institutions. This study analyzes the wealth effects of the reforms on the banks and non-bank financial institutions and the changes in their systematic risk resulting from financial deregulation over the period 1984 to 1991. The results indicate that while there was a significant cumulative gain for the insurance industry, unlike a number of U.S. studies, there was no evidence of wealth transfer among the institutions during the period of deregulation of the Canadian financial system. Additional tests indicate that although the regulatory changes did not have a significant effect on the risk of the banks, the systematic risk of the non-bank financial institutions increased significantly during the period of regulatory reforms.
ISSN:0378-4266
1872-6372
DOI:10.1016/0378-4266(94)00123-K